World’s leading PC manufacturer, Lenovo has officially acquired Motorola Mobility expanding its business in global smartphone market.
The acquisition, announced in February has now been closed at $2.91 billion, to be paid to Google which currently owns Motorola. Lenovo will pay $660 million in cash and $750 million in newly issued Lenovo stocks. The remaining $1.5 billion will be paid to Google in the form of a three-year promissory note.
Motorola’s profits has been rolling down the hill, under Google’s umbrage. Lenovo now intends to make use of its efficient supply chain and distribution networks and make a larger profit than Motorola already makes through its units sale.
Lenovo will operate Motorola as a wholly-owned subsidiary with headquarters located at Chicago. Motorola’s current President Rick Osterloh will continue to head the business, while Liu Jun, the head of Lenovo’s mobile business, will become Motorola’s chairman, Lenovo said.
Motorola Mobility was initially bought by Google for $12.5 billion back in 2012, but it said at the time that it was mainly interested in the company’s patent portfolio. Google will still keep the patent portfolio and hand over the mobile device business to Lenovo.
Google will maintain ownership of a majority of the Motorola Mobility patent portfolio, while Motorola will receive a license to this rich portfolio of patents and other intellectual property